Organon & Company

Latest Results (17.05.2026):

Organon & Co. — fourth quarter of 2025: Organon & Company reported Q4 2025 revenue of $1.507 billion (down 5% as‑reported, down 8% ex‑FX) and full‑year 2025 revenue of $6.216 billion (down 3%). Q4 produced a GAAP net loss of $205 million (‑$0.79/share) driven primarily by a $301 million goodwill impairment; non‑GAAP adjusted diluted EPS for Q4 was $0.63. Full‑year adjusted EBITDA was $1.907 billion (30.7% margin) and full‑year non‑GAAP adjusted diluted EPS was $3.66. The company expects 2026 revenue and Adjusted EBITDA to be roughly in line with 2025, declared a $0.02 quarterly dividend and reported cash of $574 million vs. debt of $8.64 billion.

Revenue — Q4 and Full Year 2025

Q4 2025 revenue was $1.507B (‑5% as‑reported; ‑8% ex‑FX). Full‑year 2025 revenue was $6.216B (‑3% vs. 2024). Key drivers: biosimilars growth and pockets of product strength offset by declines in Women’s Health (notably Nexplanon/NuvaRing) and Established Brands pricing pressure.

Profitability & EPS

Q4 GAAP net loss was $205M (‑$0.79 diluted EPS) vs. prior‑year income of $109M; loss includes a $301M goodwill impairment. Q4 non‑GAAP adjusted net income was $165M (adjusted diluted EPS $0.63, down ~30% year‑over‑year). Full‑year GAAP net income was $187M ($0.72 diluted EPS); full‑year non‑GAAP adjusted net income was $954M ($3.66 EPS).

Adjusted EBITDA & margins

Q4 Adjusted EBITDA was $383M (margin 25.4%), down from $448M a year earlier. Full‑year Adjusted EBITDA was $1.907B (30.7% margin), effectively flat with 2024 as lower adjusted gross margin was offset by reduced R&D.

Product & portfolio performance

Biosimilars grew (Hadlima strong; Biosimilars +11% Q4, +4–5% FY). Women’s Health declined (Nexplanon sales pressured — ~20% ex‑FX Q4; NuvaRing down ~23% ex‑FX FY). Fertility mixed: down in Q4 (China weakness) but up 8% ex‑FX for the full year. Established Brands faced pricing and volume pressure, especially respiratory products.

One‑time costs and margin drivers

Reported gross margin fell to 49.2% in Q4 (vs. 56.3% prior year) and to 53.3% for the full year (vs. 58.0%) primarily due to one‑time manufacturing/supply‑network optimization costs, amortization and acquisition‑related effects; adjusted gross margin also declined.

Balance sheet & capital allocation

As of 12/31/2025 cash and equivalents were $574M and total debt was $8.64B. The Board declared a $0.02 quarterly dividend payable March 12, 2026. The company noted active deleveraging and disciplined expense management as priorities.

2026 guidance & outlook

Organon expects full‑year 2026 revenue of ~ $6.2B and Adjusted EBITDA of ~ $1.9B (both roughly in‑line with 2025). Management forecasts modest margin headwinds (adjusted gross margin ~75–100 bps lower) and an effective non‑GAAP tax rate around 27.5%–29.5%.

Other matters

On Feb 11, 2026 the Audit Committee began a review of the timing of prior purchases of biosimilars from a supplier; no determination of inappropriate conduct or need to change prior financial statements has been made and the company expects to timely file its 10‑K. The company completed the divestiture of the JADA® system on Jan 28, 2026.